Children’s Wellbeing and Schools Bill

Lord Agnew of Oulton Excerpts

Tuesday 16th September 2025 Lords Chamber

[Baroness Longfield (Lab)]

My Lords, I will speak to my Amendment 450 on managed moves, as well as Amendment 453, which is in the name of the noble Lord, Lord Storey.

The amendments concern a group of children who are literally moved between schools. At the moment, they are pretty much out of the spotlight and are not in any way accountable within the system. Mine is a very practical amendment: it seeks to provide a framework that is consistent, fair and transparent, so that we do not lose these children. It would ensure that we know where they are and that the moves are in their best interests. Managed moves relate to permanent changes of pupils on a school registration where the move is not the result of a permanent exclusion, transfer to a special school, school closure or movement between educational phases. They are currently unmonitored and unregulated in many areas.

While some local authorities have very strong protocols and partnerships that mean that managed moves operate well, the lack of appropriate guard-rails, to ensure moves between schools are in the best interests of the child, has allowed some problematic practices to emerge. In the current system, frequently neither the local authorities nor the Government know where, or even if, the child is being educated following a managed move. The Who is Losing Learning? report this year uncovered a deeply concerning trend: it estimated that, for every child that was permanently excluded, there were 10 more invisibly being moved around the system behind that. There are also reports that, sometimes, children can almost be traded between different schools and systems within this process. Some children will spend a lot of time out of school as a result, and others are moved time and time again.

The solution proposed in my amendment is very practical. It would bring managed moves in line with suspensions and exclusions. It proposes that they are put through the existing fair access protocol and that local authorities report on its use to the Department for Education. This would subject managed moves to a collaborative peer review and set out what knowledge and oversight the appropriate local authorities and the Department for Education have. It would be important that discussion of, and application to, the fair access protocol should happen before the move is initiated, to ensure that the child’s education does not get disrupted as a result.

We want local authorities to keep good records, as we must be clear on where responsibility lies for that child as they move between schools. We also want a stipulation that this does not apply to a child when they move from one school to another because of a change in the child’s residence. There is a real need for a definition of managed moves and for all those managed moves then to be reported back to the department, with an annual report on the numbers and nature of those moves.

There is an opportunity here to draw on the really good practice that occurs in many areas and to create a standardised approach that would be fair, transparent, accountable and, ultimately, in the best interests of the child. This speaks to the ambition that we all have for increasing opportunities for all children while also strengthening inclusion—that is what we all want to see. The provisions are practical and doable, and I look forward to the Minister’s response. I beg to move.

[Lord Agnew of Oulton (Con)]

My Lords, I speak in support of my Amendments 452 and 454, on the control of admissions into schools. This is a fraught issue for parents trying to get their children into excellent schools that lack sufficient places, so rationing—that unpleasant word—has to apply. Where the shortage of places is structural, outstanding schools can be and are supported to expand their facilities. In my trust, we have an outstanding school that started out with us in special measures over 10 years ago. It has nearly doubled its cohort size over that time, and I am grateful to the local authority and indeed to the DfE for supporting that expansion in physical terms. This year, it was the highest-performing secondary school in Norfolk at GCSE, and I am incredibly proud of the staff who have achieved that. But, more relevant for this legislation, it shows that the system can work well and responsibly.

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[Baroness Barran (Con)]

My Lords, we have seen some of the most significant improvements in outcomes for pupils in our free schools, with schools such as Michaela and Ark Greenwich in London, Eden girls and boys, part of the Star academy trust in Birmingham, and the Mercia School in Sheffield, to name but a few, achieving remarkable results. I know that my noble friends Lord Harris, Lord Nash and Lord Agnew are very likely to add to that list of exceptional free schools that they have been part of creating.

Free schools have been a mechanism for the injection of new ideas, new energy and improving models of education into the state system. Free schools respond to parental and community demand; they provide parents with choice over their child’s education and they have driven up standards. Free schools are usually part of a strong multi-academy trust that has a track record of delivering high-quality education and the back-office capacity needed to support smooth and financially sustainable operations across HR, finance, IT, premises and more. Local authorities do not have and never have had the same capacity and ability to provide tailored support to schools.

The reason for the change in policy in the Bill to allow local authorities to open free schools in future is given in the policy summary, which says that the measure better aligns

“local authorities’ responsibility for securing sufficient school places with their ability to open new schools”.

Again, to loop back to the previous group, on which the Minister did not commit to write—I am sure that her officials noted my request for data—can she share the evidence that there really is a gap in their ability to secure sufficient school places and cite any instances where a local authority has been unable to meet its sufficiency duty as a result of a lack of applications from suitable trusts to establish a new free school? Certainly, during my time in office, there were always multiple applications for new presumption free schools, both mainstream and special schools.

My worry is that this is an example of bureaucratic tidiness being prioritised over outcomes for children. The English system is not tidy: we have voluntary-aided schools, voluntary-controlled schools, foundation schools and many other models. On paper, it might look messy, but we have still been able to rise significantly up the global league tables because we focused relentlessly on outcomes over bureaucracy. This clause feels like we are putting a bureaucrat’s diagrams first—even, I add before the Minister growls at me too much, a bureaucrat with a big heart and a lifelong commitment to children. All of this will change—and to the detriment of pupils.

It will also create higher costs for the Government. In an interview with Schools Week in April, Rachael Wardell, the new president of the ADCS, said, on the range of new responsibilities that councils will be given in the Bill, that

“part of our ongoing dialogue with government is going to be about, if you want us to do these things, then we’re going to need to be resourced accordingly”.

Can the Minister give an estimate of the additional funding needed for local authorities to fulfil their new duties, including in relation to free schools?

This proposed change creates a fundamental conflict of interest for the local authority. It will both invite proposals for a new free school when one is needed and be able to propose one itself, and it will then decide which proposal to approve. That is hardly a system designed to build confidence. We are told that, where it puts forward its own proposal, the Secretary of State, through the work of the regional directors, will be the decision-maker; however, this introduces an additional layer of work and, dare I say it, bureaucracy in a system that is currently working reasonably well. Organisations such as the New Schools Network have been critical in supporting trusts, establishing free schools and building capacity in the sector. We therefore think that the change in policy created by Clause 57 is a fundamental mistake and unnecessary, and I hope that the Minister will think again.

My Amendment 480 seeks to unblock the pipeline of free schools, which have been put on hold since the election. I think that 44 free schools are on hold, including some that bring high-quality 16-to-19 education to areas of very high deprivation, such as those with a high percentage of white, working-class boys, which the Secretary of State has recently focused on. Surely this is a way to demonstrate that focus and unlock those applications now.

The Government have, so far, spent twice as long reviewing the free schools pipeline as it took to open the first 24 free schools in 2010. The time between that election and the opening of free schools was 142 days; in contrast, the time between this Government’s announcement of the review in October 2024 and today has been about 288 days. Overall, it feels like the whole programme has been delayed, and I hope that the Minister can reassure the Committee that this is not the case and put some numbers on how many places will open in the next three years, in both special and mainstream schools.

Finally, I express my support for Amendment 481, in the name of my noble friend Lord Agnew, which would bring greater transparency to the accounts of maintained schools. I am sure that my noble friend, like me, is tired of being told that there is not enough transparency around academies, even though there is actually no financial visibility for maintained schools. I beg to move.

[Lord Agnew of Oulton (Con)]

My Lords, I will address my Amendment 481. This group is a bit of a mixed bag, but I think that my amendment is relevant and important, as it seeks to level the playing field by ensuring that there is a high level of financial governance for local authority schools compared to academies. Yet again, the credit must go to a previous Labour Government for setting out such strong foundations to underpin the governance of academies; comparing academies and local authority schools is like light and day.

I have a reputation for being something of a martinet when it comes to the disciplined management of school finances. Various people have made fun of me over the years, which does not trouble me in the least, because every pound I have saved from wasteful and poor management in schools is then available to go to the front line in improving the education of children. The Minister might even want to call me a bureaucrat, because I have been so assiduous in that part of the system. I would love to see the overall schools budget at a much higher level, but that will not happen given the parlous state of our country’s finances. We therefore have to work with what we have.

In the meantime, the level of accountability and visibility of LAs’ oversight of their own schools is murky at best. An academy trust has to complete a full external audit of its finances within four months of the close of the academic year—that is, between 31 August and 31 December. The accounts have to be filed with Companies House on that date. At that point, the full record of the trust’s financial affairs is available for public scrutiny for the year ending only four months earlier. You can get that information on any trust in England with about four clicks of a button. There is a red list in the DfE—I hope the Minister has seen it —of any trust that misses this deadline. When I was there, any trust more than a month late was immediately placed on a risk register. If schools’ managers or trustees cannot get the money right, how can they ever get the education right? It really is that simple.

But what visibility is there for local authority schools? There is virtually nothing that is easily accessed. Even as the Minister for the school system, I found it an endless battle to get this sort of information. Although LAs would complain frequently about not having enough money, they were rarely forthcoming about how they were spending what they had. This is a very unacceptable state of affairs. If we look at some key categories of oversight and compare the levels of transparency, I hope noble Lords will see why this very unbalanced situation needs correcting.

First, there is the accountable body. For academies, it is the board of trustees and the members sitting above that. The DfE Academy Trust Handbook sets the rules. These board members and the members themselves are on every academy’s website. For local authorities, they are their own accountable body—and try talking to that person.

Secondly, there are audited annual accounts, which I have already explained. But there are no requirements for anything similar for local authority schools. It is even worse that the average frequency of an internal local authority audit of its own schools is about every three years, and it is virtually impossible to see a copy of those reports. I failed consistently when I was in the department.

Thirdly, there is internal auditing. For trusts of a certain size, this is another annual requirement. For noble Lords not familiar with the term, an internal audit is not exactly as it says on the tin. An internal audit is conducted by external specialists but looks at different areas of schools’ operation beyond straight finances, such as deep dives into cyber vulnerability, payroll, the condition of the school estate and so on. There is no such requirement for local authorities.

Fourthly, there are financial returns. Academies are required to submit annual accounts to the DfE and indeed a three-year budget forecast. They also need to demonstrate compliance with their chart of accounts. For local authorities, again there is no standard national chart of accounts, and they are not required to submit three-year forecasts.

Fifthly, there are monthly management accounts. Academies are required to ensure that the chair of the board of trustees sees these at least four times a year. My noble friend Lady Barran actually reduced it. I had it at six, but she was right; my bureaucratic obsession probably had got the better of me. But this is not required for chairs of governors in local authority schools.

Sixthly, there is related-party transaction reporting. Academies have to comply with specific rules, such as needing independent authorisation from the DfE for larger sums. It was £20,000, but my noble friend—she might correct me—lifted it to £50,000. Again, there is nothing like that for local authority schools.

Seventhly, there is the publication of salaries. Academies have to disclose all salaries above £100,000, but local authority schools do not. This is required only for LA officers at LA level. Estimates I have seen indicate that there are over 1,000 staff in local authority schools across England who exceed that threshold, so any defence that it is not a material number of people in receipt of public money does not wash.

Eighthly, there is website reporting. Academies are required to publish their audited accounts on their website. There is no requirement for local authorities to publish their school accounts.

Ninthly, there is the accounting officer. Academies have to appoint an accounting officer with—I stress—personal responsibility for accurate and timely reporting. No such thing exists in local authority schools.

Given that LAs are facing an unprecedented financial squeeze, with some virtually bankrupt, such as Birmingham, there should be no excuse for them not to up their game. The costs—which will of course be the reflexive defence for not doing anything—would be trivial against the improvement in the spending going on inside the LA schools and would be recouped many times over the cost of the audit fee.

Every time I have taken over a local authority school, we have eliminated hundreds of thousands of pounds of wasteful expenditure, which is then focused on teaching. In every secondary school inside my trust, because of the very tight financial management, we have been able to extend the school day by three hours a week. If a child spends the full five years of his or her education in one of those schools, it is the equivalent of receiving another year’s education. That is what is at stake here. Norfolk is not a well-funded local authority; it is about middle ranking. We are not getting any handouts. It just shows you that, if there was more rigour in the system, it would make an enormous difference to the children in our country.